Tips for Playing Forex to be Profitable and Avoid Losses
Tips for Playing Forex to be Profitable and Avoid Losses - Learning how to play forex to make it profitable seems easy, but it actually requires a variety of knowledge, because it contains many aspects, including investment aspects and aspects of online business. Traders are not only required to be sensitive to the conditions of the world economy that affect financial markets, but also must be responsive to technology, and be able to manage themselves and their funds. read also learn forex with minimal capital.
It should be noted that in the world of financial investment, the saying "High Risk, High Return" applies. Not everyone can balance these elements of risk (Risk) and returns (Return); so playing forex does become easy for some people, but it becomes difficult for others. What is the trick? To master how to play forex to be profitable, a trader needs to start from the planning stage and do it in a disciplined manner.
1. Realistic Trading Plan.
One thing you need to keep in mind here: "profitable" is not the same as big profits without any effort. It is impossible to make big profits with change and without wanting to study first. So, you have to set a realistic profit target, comparable to the amount of capital that is ready to be at stake, while not hesitating to continue learning.
How big is the realistic target? According to a number of professional traders, the target of 10% per month is good enough. And even then, for pro traders, not a beginner trader who will certainly repeatedly make a lot of mistakes while still learning. As a beginner, you should not set targets too high and not be lazy to learn, because it will not motivate, but instead encourage you to make many mistakes that result in fatal losses.
2. Knowing Forex Analysis Methods.
Want to be able to play forex to be profitable, but don't know how to analyze price movements in the market? It is impossible. At the very least, you should know how to do technical analysis, not caring about the help of simple technical indicators or more complex Price Action. Then, you also have to know when there are important events in the Forex Calendar, so as not to get caught up in market chaos that often occurs before and after the event.
To understand all that, build your sensitivity to the market, and master how to play forex to be profitable, do not have to spend a lot of money. After all, there have been many articles on the internet that discuss all types of forex analysis. As long as you master the trading platform used and learn slowly, of course you will be able to do it over time.
3. Capital Management.
One of the common mistakes that traders make to fail profits, is to mistakenly allocate capital. Usually, beginners want to get the fastest profit, to open transactions in large lots, regardless of how much funds they have in the account balance and how much Available Margin is left in the account. Then beginners also often quickly close the transaction when only a small profit, but linger and are reluctant to close the transaction when experiencing loss until finally helpless again. In fact, all of that is a fatal mistake. Don't expect to be able to master how to play forex to be profitable, if you still repeat it.
You need to learn Money Management, either by setting a Risk / Reward Ratio (Risk / Reward Ratio) in each transaction, and by limiting how much percentage of capital will be at stake in trading. For example, it is arranged so that each transaction does not need more than 5% of capital, then Risk / Reward Ratio 1: 2. With RR 1: 2, if a Stop Loss is placed at a distance of 10 pips, the profit must be taken at a distance of 20 pips. Thus, you will be able to profit even if you experience occasional losses, provided that more transactions benefit. In addition, because it only uses 5% of capital, the funds in the account will not be forfeited just because of a loss. You still have many opportunities to make a profit.
Thus the three secrets of how to play forex to be profitable and avoid losses. All of this is no longer a secret for professional and experienced traders. However, novice traders need to train themselves first before getting used to doing everything. Hopefully useful and good luck.
It should be noted that in the world of financial investment, the saying "High Risk, High Return" applies. Not everyone can balance these elements of risk (Risk) and returns (Return); so playing forex does become easy for some people, but it becomes difficult for others. What is the trick? To master how to play forex to be profitable, a trader needs to start from the planning stage and do it in a disciplined manner.
1. Realistic Trading Plan.
One thing you need to keep in mind here: "profitable" is not the same as big profits without any effort. It is impossible to make big profits with change and without wanting to study first. So, you have to set a realistic profit target, comparable to the amount of capital that is ready to be at stake, while not hesitating to continue learning.
How big is the realistic target? According to a number of professional traders, the target of 10% per month is good enough. And even then, for pro traders, not a beginner trader who will certainly repeatedly make a lot of mistakes while still learning. As a beginner, you should not set targets too high and not be lazy to learn, because it will not motivate, but instead encourage you to make many mistakes that result in fatal losses.
2. Knowing Forex Analysis Methods.
Want to be able to play forex to be profitable, but don't know how to analyze price movements in the market? It is impossible. At the very least, you should know how to do technical analysis, not caring about the help of simple technical indicators or more complex Price Action. Then, you also have to know when there are important events in the Forex Calendar, so as not to get caught up in market chaos that often occurs before and after the event.
To understand all that, build your sensitivity to the market, and master how to play forex to be profitable, do not have to spend a lot of money. After all, there have been many articles on the internet that discuss all types of forex analysis. As long as you master the trading platform used and learn slowly, of course you will be able to do it over time.
3. Capital Management.
One of the common mistakes that traders make to fail profits, is to mistakenly allocate capital. Usually, beginners want to get the fastest profit, to open transactions in large lots, regardless of how much funds they have in the account balance and how much Available Margin is left in the account. Then beginners also often quickly close the transaction when only a small profit, but linger and are reluctant to close the transaction when experiencing loss until finally helpless again. In fact, all of that is a fatal mistake. Don't expect to be able to master how to play forex to be profitable, if you still repeat it.
You need to learn Money Management, either by setting a Risk / Reward Ratio (Risk / Reward Ratio) in each transaction, and by limiting how much percentage of capital will be at stake in trading. For example, it is arranged so that each transaction does not need more than 5% of capital, then Risk / Reward Ratio 1: 2. With RR 1: 2, if a Stop Loss is placed at a distance of 10 pips, the profit must be taken at a distance of 20 pips. Thus, you will be able to profit even if you experience occasional losses, provided that more transactions benefit. In addition, because it only uses 5% of capital, the funds in the account will not be forfeited just because of a loss. You still have many opportunities to make a profit.
Thus the three secrets of how to play forex to be profitable and avoid losses. All of this is no longer a secret for professional and experienced traders. However, novice traders need to train themselves first before getting used to doing everything. Hopefully useful and good luck.
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